PayBreakdown - Salary Calculator & Budget Manager

What is PAYE?

PAYE means Pay As You Earn, the system employers use to deduct income tax and other payroll deductions before paying employees.

What this page helps with

PAYE stands for Pay As You Earn. It is the payroll system used by employers to deduct income tax before you receive wages. Your tax code tells payroll how much tax-free allowance to apply.

Official sources

Income Tax rates and Personal AllowancesNational Insurance rates and categoriesStudent loan repayment thresholdsPension tax reliefNational Minimum Wage and National Living Wage ratesStatutory Maternity Pay and LeaveStatutory Sick PayFCA guidance on misleading financial promotionsOff-payroll working and IR35 guidanceUnderstanding off-payroll workingSalary sacrifice for employersNHS Employers pay scales 2026/27NHS Health Careers Agenda for Change pay rates

Last updated 2026-05-07. Planning estimates only. Not financial advice.